Share price - General Discussion, page-1435

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ChinaSyndrome

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19/10/20

13:12

Post #: 48200645
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Originally posted by skijapan: ↑

From our UK investors on todays news they must be lapping up the cheap shares..

As I have mentioned before, I think we can expect this to be a full blown exploration campaign operating alongside the main prospect field development.

Although an early indication, Coola Carbonatite demonstrates an ROE of 2.99%. Early studies (1999) suggested an ROE of 3.64% in comparison to the Longonjo project with high grade intersections with an ROE of 2 to 4% (Jorc report 2020).

In other words, their is a growing probability that we have ourselves another Longonjo type deposit.

I have looked into other mine developments, the IRR, the EBITDA, mine life, free cashflow, mine construction lead time, types offinancing.

Without going into to much detail, a majority of the projects required a very high level of financing by comparison to Pensana, the projects therefore led to greater equity dilution and the mines themselves were not strategic in nature as they are two a penny, gold, potash etc.

I think given the nature of the project and working on the numbers from the PFS alone, it is clear to me that a lul in the share price is extremely unlikely. Mine construction is due to commence after the Chinese New Year and I expect the mine to take 14/16 months.

Although early doors, a future P/E of 12/15 would seem reasonable, and if in December the EU decides to commit to the 55/60% emission reduction by 2030 and that Biden launches his $2T green stimulus package. NdPr could well be the new Gold, but on another level given the low competition.

Another box ticked and the institutions will just keep adding, maybe on another level after the BFS as they close the gap between its peers, Lynas and MP materials.

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Not sure that our CFO would agree with your marginally extended timetable, although it may play into the bigger picture quite well ?

PM8 Price at posting: $1.55 Sentiment: Buy Disclosure: Held
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0 Great analysis

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Share price - General Discussion, page-1435

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